These stocks reporting next week typically beat the Street and rally
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Wall Street is bracing for another busy week of earnings as the reporting period reaches its halfway point — and certain stocks are likely to perform better on the back of their reports. Approximately 29% of the S & P 500 is set to report next week. Apple will be one of the most anticipated companies. Several pharmaceutical companies, including Amgen , Eli Lilly and Moderna , are also scheduled to announce their quarterly results. Wall Street will also gain insights on consumer strength from various consumer-oriented companies, such as McDonald’s , Airbnb , PayPal and Starbucks . Companies that manage to top consensus estimates for the quarter, or raise their forward guidance, could see their shares rise as a result, though it’s far from a perfect science. Conversely, underperformance or disappointing guidance could put shares at risk of a sell-off. CNBC Pro screened for companies reporting next week that have a record of outperformance. The following stocks have beat analysts’ expectations at least 85% of the time and rise at least 1% on average after they release their earnings results, per data from Bespoke Investment Group. Apple Investors will be keeping an eye on Apple on Thursday after the bell to gauge demand for its products and services, particularly sales data from China following the launch of the iPhone 15 line. The company has the highest market cap out of the names on the list. Apple has beat earnings expectations in 89% of its past reports and typically 1.3% on average following a report. The stock remains up nearly 30% year to date but has fallen about 15% since its 2023 high at the end of July. Shares had their worst day of the year following the company’s fiscal third-quarter earnings report. Goldman Sachs is expecting Apple’s fiscal fourth-quarter results to come in line with expectations. “We’re encouraged by the acceleration in Services revenue growth driven by a recovery in app spending, as well as continued growth in the iPhone installed base and increasing hardware attach per user,” analyst Michael Ng said in a Wednesday note. e.l.f. Beauty E.l.f. Beauty is slated to report results Wednesday. The company has managed to beat earnings and revenue estimates 96% and 89% of the time, respectively. Shares typically gain 1.16% on the back of the report. The stock has already soared more than 87% in 2023. Wall Street remains bullish on e.l.f. Beauty, with 11 of 14 analysts covering the stock rating it a buy or strong buy, according to LSEG, formerly known as Refinitiv. Consensus price estimates suggest the stock could gain an additional 38.4%. JPMorgan said it sees a “growth opportunity” in e.l.f. Beauty and named it to its analyst focus list earlier in the month. Arista Networks Cloud networking solutions company Arista Networks is the only company on the list with a perfect track record of beating earnings and revenue estimates. The stock rises an average of 1.2% after it posts its quarterly results. Despite shares pulling back nearly 13% in recent weeks, the stock is still up more than 45% in 2023. Evercore ISI named Arista Networks to one of its top artificial intelligence picks for this earnings season in an Oct. 15 note. ANET YTD mountain ANET in 2023 Workiva Workiva is another cloud software company that made the cut. The company has the highest earnings day jump on the list, with shares gaining 2.46% on average after its results come out. Workiva also has a strong history of outperforming estimates, with 100% and 97% earnings and revenue beat rates, respectively. Workiva shares have tumbled about 16% from their year-to-date highs in September, paring some of the stock’s year-to-date gains down to 12.5%. — CNBC’s Michael Bloom contributed to this report.
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